Game Development Firm Scopely Raises $200mln, Hits Valuation of $1.7bln
Los Angeles-headquartered mobile game development platform Scopely has garnered $200 million in the Series D funding phase. Including this funding, the publisher of free-to-play games has raised $458 million in total.
The latest fundraising implies a valuation of $1.70 billion for Scopely. The Series D funding phase was headed by NewView Capital, in addition to participation from the Canada Pension Plan Investment Board (CPPIB), Scottish asset management firm Baillie Gifford and global investment company BlackRock.
Furthermore, prevailing investors such as Sands Capital Ventures, Revolution Growth and Greycroft Partners participated in the funding round.
Scopely stated that the amount raised will be used to purchase and develop fresh. The company intends to carry on with the running of its six mobile games that generated more than $100 million as of now.
Additionally, the company also intends to carry on with its investment business and M&A while entering into new categories and also acquiring intellectual assets.
Scopely CEO Walter Driver explained the restrictions faced by independent studios.
“The barrier to entry from independent studios is to find product-market fit. Increasingly, it’s helpful for them to have publishing capabilities that are more global in nature and more scaled.”
The CEO further stated that Scopely will concentrate on capital infusion in taking over other budding gaming studios.
Driver revealed that the objective of the platform is to identify talented game developers. “Our technology platform is about optimizing free digital experiences for the largest amount of players possible. We’re primarily focused on finding the most passionate and talented game developers that want to specialize in making the kind of game design and might have the kind of specialized expertise that we admire.”
Javier Ferreira, the company’s co-CEO, stated that Scopely is also looking at investment opportunities in enterprises “that have demonstrated success in the marketplace” and “can benefit from our expertise.”
Ferreira further said “Now we are in a position to really go after companies and studios that can have an impact on what we’re doing. We are looking for transformational opportunities as well as smaller companies.”
With its main concentration on mobile-phone games, Scopely will try to bring the experience on multiple platforms. Ferreira emphasized that the money raised will not be used to manage operational costs. He said “This is about making strategic bets in the game space.”
NewView Capital’s Ravi Viswanathan explained the reason for backing Scopely’s fund raising program.
“Scopely is emblematic of the rise of interactive entertainment and we have seen firsthand the team’s ability to repeatedly and successfully launch and sustain mobile products, which are complex live businesses. Scopely’s technology platform coupled with their strategic partnerships and track record are unmatched in the Western world and we are thrilled to deepen our relationship to support their next phase of growth.”